NEWSFLASH! Trustee wants 2008 Taxes!

[magyar123]

I want to do our ASAP as I am in California too and the State is issuing IOU's on refunds. How did you get all your tax info together so soon?!? I'm still waiting for all mine...

That's just it - if you anticipate getting a California tax refund, all you will get is an IOU - until when/if a budget is ever passed.
So no need to really file a return in the near future - you won't get any money back until Schwarzenegger and those idiot politicians actually agree on a budget.

[jktrading]

I want to do our ASAP as I am in California too and the State is issuing IOU's on refunds. How did you get all your tax info together so soon?!? I'm still waiting for all mine...

DW got her W2, and I already had all my Schedule c information ready. Bought a tax program, and filled it all out. I'm not too worried about my state, which will be a refund of under $100.

[soleprop]

Did you exempt it?

This is an important point for people filing their bk - protect your anticipated tax returns with any remaining wildcard or income exemptions.

The State is issuing IOU's on refunds.

funny how the gov't can pull off an IOU but we can't return the favor.

[laurannm]

I am kind of wishing we had exempted ours, but hopefully my lawyer is correct in that it is safe. We used federal exemptions and had nearly the entire wildcard exemption available to us. If you don't explicitly list the refund as an exempt asset, even though you clearly have plenty of exemption room to protect it, is it still considered protected? Or does it have to be specifically listed in order to be protected?

[StartingOver08]

Has to be specifically listed to be exempted.

[CatsInTrouble]

This is the first year I'm going to owe...only about 400, so that's good.

[hopejones]

I am kind of wishing we had exempted ours, but hopefully my lawyer is correct in that it is safe. We used federal exemptions and had nearly the entire wildcard exemption available to us. If you don't explicitly list the refund as an exempt asset, even though you clearly have plenty of exemption room to protect it, is it still considered protected? Or does it have to be specifically listed in order to be protected?

I'm in the same boat. I'm wondering if I can amend my schedule to include the tax refund even though we've already had our 341. We really need that refund. It would make a world of a difference to us right now.

[soleprop]

thought this thread should be updated with the same response - you can amend your filing until the case is closed. but sooner is better!

[JoeBankrupt33]

I have estimated my taxes so far for 2008, and it looks like I'll get back about $900 from federal, but owe Colorado $1000. Would the trustee try to take that $900 when I'm planning on paying my state taxes with it? I hope not.

[dogbone33]

In OH we can only exempt around 1400. So our 8k tax return is gone! I think it's bull when we need a car since we gave both of ours back. We are already low income. We get 2k for the kids and about 4k for low income. The government gives that to us to help us then the trustee takes it. I don't get it.

[Hrdluck1]

Question everyone.
I am going to be filling Chp. 7 for myself only.
We were told by our attorney to file our taxes as "married filing seperate" and my wife should list the kids and all the deductions. She said our return will be safe from the trustee if we do this.
Has anyone had the opposite happen? Worried cause we really need these funds right now.

[jennordhavn]

I read this:

When you file married filing separately, the IRS takes a host of incentives off the table, including credits for child and dependent care, as well as deductions for adoption expenses, education loan interest and IRA contributions.

[Hrdluck1]

So if she filed serperate she will not get incentives for our 3 children?

[jennordhavn]

I think she can still claim them as dependents, but she wouldn't get to claim any dependent care expenses. If you guys don't pay for child care or don't pay a large amount, it should still be ok. Also, if she pays on student loans she wouldn't be able to deduct the interest paid.

I did a draft of my taxes as married filing jointly and married filing separately because my DH owes the IRS money and doing it jointly we get a refund of ~$800 (which would go toward what he owes) and doing it separately I would owe ~$4000. So for us it makes more sense to file jointly even though the IRS will keep the money (which is fine since we want to get it paid off, I just thought if I'd get a refund filing separately, we could keep half and send them half instead). But our case may be different from yours since I am currently the sole wage earner.

[dingdong]

If the 4000.00 is EIC ( Earned Income Credit) I don't believe the trustee can take it. It is treated the same as welfare benefits I believe.